A Company's Manager Estimates That in the Upcoming Year, Increasing

A company's manager estimates that in the upcoming year, increasing advertising costs by $25,000 will cause sales revenue to increase by $60,000. If the company's contribution margin ratio is 35%, what will be overall effect on net operating income?

A) Net operating income will increase by $12,250.
B) Net operating income will increase by $29,750.
C) Net operating income will increase by $35,000.
D) Net operating income will decrease by $4,000.